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drop down is either will or will not You purchased CSH stock for $33 and it is now selling for $42. The company has announced
drop down is either will or will not
You purchased CSH stock for $33 and it is now selling for $42. The company has announced that it plans a S9 special dividend. a. Assuming 2010 tax rates of 15% on dividends and capital gains if you sell the stock or wait and receive the dividend, will you have different after-tax income? b. Assuming the capital gains tax rate is 16% and the dividend tax rate is 42%, if you sell the stock or wait and receive the dividend, will you have different after-tax income? If the after-tax income is different, why? a. Assuming 2010 tax rates of 15% on dividends and capital gains, if you sell the stock or wait and receive the dividend, will you have different after-tax income? (Select from the drop-down menu.) I have different Assuming 2010 tax rates are 15% on capital gain and 15% on dividends, if you sell the stock or wait and receive the dividend, you after-tax income. b. Assuming the capital gains tax rate is 16% and the dividend tax rate is 42%, if you sell the stock or wait and receive the dividend, will you have different after-tax income? If the after-tax income is different, why? (Select from the drop-down menu.) lf the capital gains tax rate is 16% and the dividend tax rate is 42%, then there (Round to the nearest cent.) be a difference between the two options and the difference will be s The after-tax income of selling the stock or waiting and receiving the dividend is different in part (b) because: (Select the best choice below.) A. O B. C. D. The capital gains tax rate and the dividend tax rate are the same Selling the stock and waiting and receiving the dividend produce different before-tax cash flows. The capital gains tax rate and the dividend tax rate are different. We are considering different yearsStep by Step Solution
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